Convert Hotel Demand Into Revenues

Globally travelers (Read Millennials) are spending more money on travel be it purely business travel, family vacation or Bleisure (Business + Leisure). This has been compelling revenue managers to restructure room pricing strategies to acquire as many new consumers and retain existing guests too.

Hence, it makes all the sense for hoteliers to chalk out their plans to convert the increased demands of their business into substantial revenue with correct marketing strategies. Discussed in the second half of this blog

Let us read further to learn how to improve revenue through revenue management automation and online reputation management -

  • Emphasize on Social Media and Manage your Online Reputation effectively

Use Social media data and customer review analytics effectively to optimize distribution and maximize revenue growth. Be actively engaged on Twitter, Facebook and LinkedIn accounts as well as other popular digital media channels popular to get some visibility for your hotel. You could also spread the word by sharing tips in blogs about local events, travel bites, discounts and special offers, to attract guests.

Social media now plays a role of the effective online review platform by listing the experience voiced by the customer after and during the stay. Customers are actively using social media channels to get a prompt response to their complaints. Brands are very possessive about their online reputation management, and thus take utmost diligence in handling online guest reviews, especially negative reviews. There are numerous instances where bad reviews spread like fire and inflict serious injuries to brand image.

  • Automate Revenue Management

In such competitive times of the hospitality environment, hospitality providers need to automate their revenue management strategy. Automating distribution systems can be quite a challenge, but it is important. Asking the following questions will help you address the key concerns regarding optimization of distribution channel management and decide accordingly.

  • Which combination of distribution systems gets the maximum revenue?
  • Which one offers a good cost-benefit ratio?
  • Which system gives the maximum long-term benefit?
  • How can the systems be integrated to avoid errors in computing inventory and bookings?

Select the most advanced and innovative distribution systems to avoid frequent U-turns in distribution tool decisions that usually lead to wastage of time and resources.

Pricing intelligence software tools are much needed, to compare prices, track inventory, to give hotels the market information they need and to aid their pricing decisions and distribution.

If a revenue manager makes a learned decision to use pricing as a competitive weapon, dynamic pricing can become one of the most effective tools in the combat for price-sensitive customers. Hence, keeping a steady and competitive price is beneficial.

Further, in this blog, let’s see, how a hotel can focus to nurture demand generated and also improve on leads generated -

  • Track Inbound marketing/bookings to increase your hotel’s top line; they cost 62% less per lead as compared to outbound marketing

Every Revenue Manager should be educated about how to get the most out of their inbound leads. Track who has just hunted on your web pages for reviews or rate comparison. Express a lesser inclination for any revenue generation commitment, until they have advanced forward in your sales funnel.

A plan is required for tapping inbound prospects and turn them into paying customers, generating more revenue for us. Develop an inbound marketing process, that is not just efficient and predictable, but also repeatable in future.

  • Create a revenue generation marketing plan

When a hotel’s KPIs like occupancy rates, ADR and RevPAR increases, it is usually a good indication that the hotel is running profitably. Create a marketing and pricing plan for revenue generation that aligns with your business goals. Based on that plan set performance goals for the demand waterfall, including:

  • The number of visitors
  • Leads generated
  • Opportunities
  • Closed leads
  • Better conversion rates with prompt lead response rates

Golden rule, you are more probable to close the lead if your lead response time is faster. Assign a resource from your staff dedicated to this job.

  • More consistent and better the follow-up on leads, better the conversion of leads into opportunities

Marketers live and die by whether their leads turn into sales and eventually into revenue.

Therefore, when you have a qualified lead, make sure you have an assigned team whose sole job is to reach out to leads, overcome objections, ensure they are a fit, and get them connected to sales teams for final closure.

  • Keep customer and prospect database updated

Keep the records of your customers and prospects to get the best out of your marketing campaigns. This exercise becomes much easier with a dedicated database team updating and entering complete information on frequent intervals. This assists the marketing department to get the most accurate data to work with and the latest information that they can utilize to augment their future lead generation dynamisms.

A recent study revealed that direct bookings from the hotel’s website would make for more than 26% of online sales, including mobile phone bookings. This will only increase now as hoteliers begin to understand the potential of an own website with an efficient online booking tool to substantially increase revenues.

  • The human touch enhances lead nurturing

The importance of personal and human touch cannot be ignored, even when the world is moving towards robots and automation. Marketing should nurture relationships with every prospect. You can offer more personalized product and present a solution around a lead’s individual pain points, and cultivate future demand.

Originally published at www.sooperarticles.com on August 15, 2017.